In Brief
The Employees' State Insurance Corporation appealed two convictions for non-payment of contributions, challenging the trial court's imposition of only Rs. 1,000 fine instead of the statutorily mandated Rs. 5,000. The Supreme Court held that under Section 85(a)(i)(b) of the Employees' State Insurance Corporation Act, 1948, the minimum fine of Rs. 5,000 is mandatory and non-discretionary once the offence is established. The proviso allowing judges to impose lesser imprisonment does not extend to fining. The Court distinguished IPC cases, noting that economic offence statutes with explicit minimum penalties express clear legislative intent for mandatory deterrent punishment. The appeals were allowed and respondents ordered to pay the full fine.
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